The company recorded an 18 per cent drop in its volumes but was able to improve its market share due to an even steeper fall of 42 per cent in the overall market for commercial vehicles during the period.

Taking the results on record here today, Ashok Leyland board observed that the company had been able to stem the cash loss incurred during the first three months by improved performance in the second quarter.

Sales increased in the second quarter to 6,882 vehicles over 5,199 sold in the first quarter, but the figure for the entire first half was lower at 12,081 vehicles, compared to 14,815 in corresponding period last year.

The company ended the second quarter with a net loss of Rs 3.53 crore, though it made a nominal profit before depreciation and tax of Rs 34.8 lakh for the firsthalf.

Ashok Leyland's turnover for the second quarter stood at Rs 490.85 crore, down from Rs 522.09 crore in July-Sept 1997, while gross profit fell to Rs 15.66 crore from Rs 15.97 crore. The charge on depreciation was higher at Rs 19.18 crore as against Rs 17.55 crore.

Expressing satisfaction over the rise in volumes during the second quarter over the first quarter of the current fiscal, the company board said the financial performance too had improved owing to working capital reduction and a number of cost cutting measures.